Where GE's Biggest-Ever Deal Began--With the Twists and Turns Along the Way

The biggest deal in General Electric Co.'s history began with a February phone call and dinner between GE's Chief Executive Jeff Immelt and his Alstom SA counterpart, Patrick Kron, at a restaurant in Paris.

When the bill ultimately arrives, it will be more than $1 billion higher than people familiar with the matter said GE initially hoped to...